Security Deposits Are a Risk Center, Not a Profit Center
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Security deposit management is the rare property management process that costs real time, creates real legal exposure, and generates no revenue at all. That combination is exactly why it has gone unfixed for decades. In this episode of Beyond Rent, Conor Brennan, Co-Founder of Rentable, makes the case that security deposits are a risk center rather than a profit center, and walks through what it takes to modernize a process most operators still run on paper checks and manual reconciliation.
Conor breaks down the compliance burden state by state: trust and escrow account requirements, interest tracking, mandatory resident documentation, and refund windows that range from 14 days in New York to 30 days in Massachusetts. Miss a step and operators face double or triple damages, with class action suits surfacing across the country. He cites one large Massachusetts operator on the hook for over $1 million over an unsigned deduction statement. He also puts a number on the operational side: roughly an hour of staff time per deposit, which works out to 1,000 hours a year on a 1,000-unit portfolio.
The conversation also digs into the resident side of the equation. The deposit refund is often the last interaction a property manager has with a resident, and it is the reason behind a striking share of one-star reviews. Conor explains why a trusted third party holding deposit funds builds resident confidence, how flexible payment plans keep renters in the door as states cap deposits at one month’s rent, and what the new built-in Rent Manager and Rentable partnership means for property managers who want deposits off their plate entirely.
Conor breaks down the compliance burden state by state: trust and escrow account requirements, interest tracking, mandatory resident documentation, and refund windows that range from 14 days in New York to 30 days in Massachusetts. Miss a step and operators face double or triple damages, with class action suits surfacing across the country. He cites one large Massachusetts operator on the hook for over $1 million over an unsigned deduction statement. He also puts a number on the operational side: roughly an hour of staff time per deposit, which works out to 1,000 hours a year on a 1,000-unit portfolio.
The conversation also digs into the resident side of the equation. The deposit refund is often the last interaction a property manager has with a resident, and it is the reason behind a striking share of one-star reviews. Conor explains why a trusted third party holding deposit funds builds resident confidence, how flexible payment plans keep renters in the door as states cap deposits at one month’s rent, and what the new built-in Rent Manager and Rentable partnership means for property managers who want deposits off their plate entirely.
About Our Guest
Conor Brennan is Co-Founder of Rentable, a Boston-based technology company that offloads the entire security deposit process for property managers across the country, from collection and compliant escrow holding through documentation, interest, and electronic refunds. He founded the company with Alex Kamisher after the two experienced the deposit process from both sides: as renters navigating certified checks and in-person drop-offs in one of the most expensive rental markets in the country, and through family involvement in real estate. Rentable now serves portfolios ranging from five units to more than 100,000 and has built compliance infrastructure covering nearly every state. The company is a built-in Rent Manager partner.
